Cap experts differ on how large the trade exception is.
Cleveland Cavaliers general manager Koby Altman has continually shown that his greatest strength is upgrading the roster with trades. That came through again earlier this summer when the Cavs acquired Lonzo Ball from the Chicago Bulls for Isaac Okoro.
This team needed more size on the perimeter, an additional ball handler, and someone who could win their defensive matchups. Ball should help in all of those areas. Additionally, Ball makes $1 million less this upcoming season than Okoro, which is beneficial in a salary-capped sport considering the Cavs are a second-apron team.
Teams can get a traded player exception when they move a player for someone making less money. The Cavs did that in the Ball for Okoro deal so they would have an exception that they could use.
There is, however, a question as to how much that exception would be. Salary cap experts don’t have a consensus yet on that. Spotrac contributor Keith Smith believes that the Cavs would have an $11 million exception because there was an injury protection clause in Ball’s contract.
Due to an injury protection clause in Lonzo Ball’s contact, the Chicago Bulls had to use a portion of their TPE for Zach LaVine to acquire Isaac Okoro.
The Cleveland Cavaliers created a full TPE of $11M for Isaac Okoro on the outgoing salary side.
— Keith Smith (@KeithSmithNBA) July 16, 2025
ESPN’s Bobby Marks also says that the Cavs would have a traded-player exception. However, he has it at $1 million due to the difference in the contracts of the two players.
Regarding the Lonzo Ball, Isaac Okoro trade and the new trade exception.
How the Cavs processed the trade, whether simultaneous or non-simultaneous, determines the amount of the TPE.
While @KeithSmithNBA has it at $11M, @BobbyMarks42 has it at $1M (see below). pic.twitter.com/x99QDZk97o
— RealCavsFans.com (@realcavsfans) July 16, 2025
A traded player exception allows the team with that exception to take back more money in a future trade than they would otherwise be allowed to do. In practice, the Cavs would be able to receive either $11 million more or $1 million more in player salary in a future deal. The money from the exception could be split over separate trades.
However, the Cavs are a second-apron team, which comes with restrictions on how they could use traded-player exceptions.
Traded player exceptions last a year after the deal has been made. This means that a trade exception that was created from a move last trade deadline could be used now or before that one-year anniversary during this upcoming season.
However, teams in the second apron cannot use a traded player exception that was created during the last league year. The league year begins on July 1. Any exception created prior to the current league year would be frozen unless that team gets out of the second apron.
The Cavs and Bulls trade was officially executed after July 1, which means it is in this league year (2025-26). As such, the Cavs are able to use it, whatever amount it is. Any exception the Cavs created before July 1 can’t be used.
A $1 million trade exception wouldn’t seem like much, but it could be helpful.
The Cavs can only take back 100% of the salary that they’re sending out in a trade and they cannot send out multiple players in a deal because of the second apron. In essence, they’re restricted to only swapping out one player for one (or multiple players) that make as much or less than who they’re sending away.
A trade exception of $1 million would allow for a larger room for error on these deals.
A possible $11 million exception would help drastically. Cleveland would have more freedom to get a rotation-level player while sending out one of their smaller contracts to do so.
Having a traded player exception opens up more possible deals. This is helpful for a team dealing with the second-apron restrictions and doesn’t have many tools in their toolbox.
We’ll see if Altman and his front office can figure out a good way to use this.